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Musgrave Minerals: Starlight Continues To Shine

Jun. 05, 2020 5:09 PM ET34 Comments
Taylor Dart profile picture
Taylor Dart


  • Musgrave Minerals is up over 150% year-to-date after uncovering one of the most significant discoveries to date in the junior gold sector.
  • The company holds a significant land package in the prolific Murchison province of Western Australia and is in close proximity to two producers with equity stakes in the company.
  • While the company's BOD deposit was pumping out solid intercepts to date, the most recent drill hole is a bonanza-grade near surface hit that has put Musgrave on the map.
  • Based on the recent drill results out of Starlight, I believe the company could become a potential takeover target, and it's a name investors should keep a close eye on.

It's been an exceptional start to the year so far for the Australian Gold Miners, with both Silver Lake Resources (OTCPK:SVLKF) and Evolution Mining (OTCPK:CAHPF) significantly outperforming the Gold Miners Index (GDX). Unlike miners in Canada and Mexico that lost a month or more of production from COVID-19 related closures, most Australian producers beat guidance, with Australia seeing barely any infections. One gold name on the Australian Exchange [ASX] that's outperformed the whole group is Musgrave Minerals, up 160% year-to-date after building on a massive discovery at its Cue Project. The bonanza-grade hole released this week has the company contending for the gold discovery of the year in the junior sector, with multi-million-ounce resource potential at the company's Cue Project. Based on recent drill results and a strong technical picture for Musgrave, I believe any 25% corrections are likely to be buying opportunities.

(Source: TradingView.com)

Musgrave Minerals has been quietly delineating its Cue Project under the radar the past year, and drill results to-date have been exceptional, warranting a watchful eye on the stock. The most recent drill hole, however, was one of the best intersections reported this year in the sector, with 20-MORC-033 intersecting 12 meters of 112.9 grams per tonne gold. This hole alone catapulted the stock up 70% this week despite a sluggish performance for the metal, and it has pushed Musgrave onto the top-10 list for strongest performers year-to-date in the sector. Let's take a closer look at the company and its flagship Cue Project below:

(Source: Company Presentation)

(Source: Company Presentation)

Musgrave Minerals is an ASX-listed exploration company, and its primary focus is its Cue Project, located in the Murchinson Province of Western Australia. In what looks to be one of Silver Lake's rare missteps, Musgrave gained 100% control of the project in 2017 following

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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